MONEY MAKES THE WORLD GO AROUND

Preview of Main Ideas

Traveling to various countries and having to change U.S. dollars into local money can be confusing. Following a ratio pattern can simplify such currency exchanges.

Connection with the Curriculum

This activity can be taught in Geography, Social Science, or Mathematics classes.

Teaching Level: Grades 6-8.

Objectives Classification Outline (Also see objectives classification matrix below.)

Objective #1: The student will understand how to exchange one currency for another.

Essential Element: Human Systems.

Standard #11: The patterns and networks of economic interdependence on earth’s surface.

Knowledge Statement #2: The basis for global interdependence.

Skill Set #4: Analyzing geographic questions.

Skill #3: Interpret and synthesize information obtained from a variety of sources – graphs, charts, tables, diagrams, texts, photographs, documents, and interviews.

Theme: Human-Environment Interaction.

Objective #2: The student will learn a ratio to implement currency exchange rates.

Essential Element: Human Systems.

Standard #11: The patterns and networks of economic interdependence on earth’s surface.

Knowledge Statement #2: The basis for global interdependence.

Skill Set #4: Analyzing geographic information.

Skill #3: Interpret and synthesize information obtained from a variety of sources – graphs, charts, tables, diagrams, texts, photographs, documents, and interviews.

Theme: Place.

1. Various currency exchange tables.
2. Paper.
3. Pencil.

1. Hand out a currency exchange table and McDonald’s menu from different countries (or you can create your own menus). Students may work alone or in cooperative groups of three.
2. Ask how much a selected item(s) would cost in U.S. currency.

1. If students have not already developed a systematic approach to converting from one currency to another, initiate a discussion of rates and ratios and proportions.
2. A ratio is a comparison of two items, such as one U.S. dollar equals 1.44 Euros. A proportion is a comparison of two ratios, such as 1 is to 1.44 as 4 is to "X." A discussion of means and extremes, and computations (multiplication and division) will result in a systematic approach to currency exchanges. (One and "X" are the extremes and 1.44 and 4 are the means. The product of the means must equal the product of the extremes, hence X=5.76).

1. Present various monetary situations from several nations, and have students compute equivalent U.S. dollars/cents costs.
2. Emphasize use of same ratio and proportion pattern so students acquire a definite approach to converting monies.

Extending the Lesson

1. Discuss if North America might benefit from similar single monetary system combining Canadian, American, and Mexican monies.

Assessing Student Learning

Have students convert from one currency to another using various exchange rates.

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